Many of us dream of living on interest on deposits and do nothing. Everyone wants to travel, have fun and learn something new, and not waste their time on work. Today in Russia there are many banks that offer their customers various deposits. Each financial institution has its own rates and conditions for placing money. For a depositor, the main thing is to remember that too high interest rates on deposits are a risk, because banks that do not have liquidity problems will not pay you a lot. Do not dream that you can live on one percent, you need to take into account inflation, and the fact that in order to get a good income from a deposit you need to put a large amount of money on it.
Interest on deposits and types of deposits
All banks pay their depositors money in the form of interest for the fact that they keep their own money in a financial institution. According to the legislation of the Russian Federation, interest on deposits is accrued daily. They are paid according to the agreement between the depositor and the bank (once a month, quarter, half year, year, etc.). There are two types of interest calculation:
- Simple - when interest is charged to a separate customer account. Transfer occurs within the time specified in the contract.
- Complex - when interest is accrued with capitalization. In a word, the amount of interest on the deposit is added to the body of the deposit monthly or quarterly.
Thus, if you open a deposit in the bank for the same period and with the same interest rate, then, depending on the method of calculating interest, the final amount of your income will be different. Naturally, with the capitalization of interest, you will earn more, because their amount will be added to the body of the deposit and increase it. Each bank has a deposit rate, it depends both on the institution’s policy and on the need for cash in the bank. The main thing that the investor needs is to check the reputation of the institution (and in the modern world it is simple) and only then decide on investing.
Today in Russia, banks offer their depositors three main types of deposits :
- Urgent deposit.
- Perpetual (on demand) contribution.
- Cumulative contribution.
All of them differ from each other in many properties and have many features.
Time deposit
A term deposit is a placement of money in a bank for a specific period, which is specified in the contract, after which the depositor can withdraw his savings along with interest. But there is another option - to roll over the deposit. There are three main types of term deposits: short-term (1 - 3 months), medium-term (3 - 9 months) and long-term (more than 9 months). Usually, the longer the term, the higher the rate on deposits with banks. On the one hand, this type of deposit is the most profitable for depositors, because banks offer you the highest interest rates on fixed-term deposits. On the other hand, you cannot, if you wish, take your money ahead of schedule without loss of interest.
The deposit can be issued in rubles and in foreign currency.
Unlimited deposit
A termless deposit is a deposit that is valid without any time limits. Its most important quality is that you can get money back from a financial institution at any time. The advantages of a perpetual deposit include an unlimited period of storage of funds and the possibility of withdrawing them without loss of interest. By cons - low interest rates of banks on deposits.
Like a fixed-term deposit, an unlimited can be opened both in rubles and in foreign currency.
Savings deposit
An accumulative deposit is a deposit that is issued for a specific time, usually for several years. According to the terms of the contract, the owner can deposit funds to the account at any time, but he cannot withdraw funds before the deposit expires. The interest rate on deposits of this type is somewhere in the middle between the interest rate on term and term deposits.
You can open an account in rubles and in foreign currency.
Deposits in rubles
In all countries of the world, deposits in national currency have always been considered the most profitable, and the Russian Federation is no exception. Today, all banks in Russia offer customers a huge amount of deposit programs in rubles. The deposit rate in each institution is different, it often changes, both in the direction of increase and decrease. According to statistics, stable banks offer an average market interest on deposits. As of today, the average interest rate on the market is 9 -11% per annum. There are, of course, institutions where you can make a deposit at 19%, but too high an interest rate indicates the instability of the bank. For example, deposit rates at Sberbank in national currency range from 8.41 to 10.52% (the percentage depends on the duration of the deposit), but also the reputation of the institution of the highest level.
Deposits in dollars
Many residents of the country hold their savings in foreign currency. The most common money in the Russian Federation, in addition to the ruble, is dollars. Many, in connection with the devaluation of the ruble, try to buy currency from each salary. Therefore, a sufficiently large number of citizens of our country are ready to open deposits in dollars. Yes, the interest rate here will be much lower than with a deposit in the national currency, but the ruble exchange rate is falling, respectively, the exchange rate of the American currency is growing. In Russia, there are many large banks that will offer you a good interest rate when opening a deposit in dollars. The average rate on deposits in the market today is from 4% to 6% per year. A few examples:
- VTB 24: from 3.22% to 5.55%.
- GAZPROMBANK: from 3.70% to 5.00%.
- "BANK OF MOSCOW": from 3.22% to 5.61%.
- Raiffeisenbank: from 3.53% to 5.73%.
The amount of interest on a dollar deposit, as well as on a deposit in rubles, depends on the period of placement of funds. Take, for example, deposit rates at Sberbank.
- 6 m deposit: 4.19-5.05%.
- Deposit per 1 g: 3.4-4.13%.
- Deposit for 2 g: 3.35-3.78%.
Here you need to choose for everyone independently and take into account how long you are ready to part with money.
Deposits in Euro
The euro currency has become popular in the Russian Federation relatively recently, but every year more and more residents of Russia prefer to save money in it. Banks always try to meet the needs of investors, therefore they prefer to work with all popular currencies (dollar, euro, pound). Deposits in euros can be issued in almost every financial institution in Russia. The deposit rate in this currency is small, but, like the dollar, the euro is constantly growing. Today, the crisis in the Russian Federation, the ruble is depreciating, many experts advise citizens to keep money in the currency. Some examples of rates on foreign currency deposits:
- SBERBANK: from 3.08% to 4.95%.
- VTB 24: from 3.12% to 5.34%.
- GAZPROMBANK: from 2.50% to 3.10%.
- "BANK OF MOSCOW": from 3.12% to 5.21%.
- Raiffeisenbank: from 2.53% to 3.02%.
Yes, interest is lower than with a deposit in rubles and even American currency, but many who have high hopes for the euro.
Deposit rating of Russian banks
We live in a world where you can’t hide anything, so finding out information about any bank in the Russian Federation is quite simple. You can go online and browse everything that interests you. Often, investors are looking for ratings of Russian banks, and even more so the ratings of the most profitable deposits in rubles and in foreign currency. Often, various organizations conduct market assessments and form tables showing the most profitable offers from institutions. If we consider deposits for a period of 1 year, then the rating in 2015 looks like this (from a higher to a lower interest rate):
- Promsvyazbank.
- "Home Credit Bank".
- "Alfa Bank".
- "UniCredit Bank".
- URALSIB
- Raiffeisenbank.
- Russian Agricultural Bank.
- Rosbank.
- Russian Standard Bank".
- Sberbank
What currency to store money in?
The Russian economy today is not at its best stage, there has been a significant devaluation of the ruble, prices are rising, and wages are in place. Many of the citizens ask themselves the question: “In what currency should money be stored?” But there is no simple answer to it. Some believe that you need to buy dollars and euros, because the rate is constantly growing. Others advise to open deposits in national currency, because the rate on such deposits is much higher. In one and the other variant there are both positive and negative sides. The main thing you need is to decide what exactly you plan to spend the accumulated amount on, and even then decide on the currency.
In Russia, there are a huge number of different banks and financial organizations. All of them are trying to attract as many customers as possible and expand their deposit and loan portfolio. Everyone in our country is trying to earn more money in order to provide for himself, his family and heirs. For many people, deposits have long become an integral part of their income. Bank deposit rates allow us to increase our savings and avoid inflation. Agree that getting an extra 10% per year on your money is not so bad.
Many experts believe that it is more profitable to invest in a business. Investor income can be up to 35-40% per year, but there is a risk of losing everything. For an ordinary person with a small salary, this is not an option, it is safer to open a deposit. Before registration, the main thing is to check whether the bank is a member of the state deposit insurance system (almost all financial organizations are part of it). After all, the system guarantees everyone a return of up to 700,000 rubles, including interest.